Swiss banks operate in a geopolitical environment marked by uncertainty and growing international tensions. A joint study by the Swiss Bankers Association (SBA) and zeb highlights the many challenges they face. The war in Ukraine, tensions between China and the United States, and deglobalization are redefining global economic balances, forcing Swiss financial institutions to rethink their strategies. Capital Insight has deciphered the report.
The report identifies 34 major risk factors, including tensions between great powers, the rise of protectionism and the transformations linked to a new multipolar world order. These developments are forcing banks to review their approach and anticipate the impact on their business.
The report places particular emphasis on the management of international sanctions, a critical issue for the competitiveness of Swiss banks. Switzerland’s historical neutrality is being put to the test, and the report calls for a clear and proactive stance on sanctions, particularly those imposed in the context of international conflicts. Swiss banks must now play an active role in defining sanctions policies in order to secure their future.
Not all banking segments are equally exposed to these geopolitical risks. International corporate banking is one of the most vulnerable sectors. Conversely, domestic wealth management could benefit from Switzerland’s safe haven status, while the retail banking sector seems relatively protected. Asset management, on the other hand, could suffer more marked negative consequences.
Despite these risks, the report is optimistic about the Swiss banking system’s ability to adapt. On the strength of its historical resilience, the sector could overcome these challenges, but only if it adopts proactive measures to manage these risks. Technological innovation appears to be an essential lever for maintaining the sector’s competitiveness.
The report highlights the importance for Swiss banks of investing in new technologies, such asartificial intelligence and the digitization of services. These innovations are not only a means of optimizing the efficiency of institutions, but also a key factor in strengthening their position on the world stage, against a backdrop of increasing competition.
To remain competitive in a changing world, Swiss banks must, according to the report, adjust their business models in line with new geopolitical risks. It would therefore be imperative to adopt a more proactive approach, particularly with regard to sanctions, while embracing technological innovations to secure their future. Can they be agile enough?
